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Veteran Contributor

Strong Cash Rental Auctions In Iowa

Alhughesauction.com  CSR wise they looked like just avg farms.

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Advisor

Re: Strong Cash Rental Auctions In Iowa

Spoiler
 

to me they looked like below average farms.Most of them had a river , drainage ditches, or a "crick".I went to watch the spectacle in mason city and felt like taking a shower afterward. there were a couple of the farms that had hog manure applied that when listing the nutrient vALue  had some reasonably priced fert. (if everything was correct)  I'm not saying they weren't at fair market value, but i hope that method doesn't become standard procedure.

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Veteran Contributor

Re: Strong Cash Rental Auctions In Iowa

I wonder if the previous tenants rented them back.

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Veteran Advisor

Re: Strong Cash Rental Auctions In Iowa

I used to own land right next to some of that in West fork twp. Trust me that guy is gonna get an education!

There was a piece of ground that Lakin ownde in that area that wasn't auctioned off. You only get 3 out of every 5 crops off it.

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Advisor

Re: Strong Cash Rental Auctions In Iowa

Probably only the people nearby would know. I guess I should rent mine???

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Senior Contributor

Re: Strong Cash Rental Auctions In Iowa

I think the cash rent auctions are here to stay. I think the next thing is gonna be paying to get in the door to eliminate guys like me who are just nosy,  I don't have the cash or stomach to think about 490 dollar cash rent.  But she is here to stay so young guys out there get to some marketing classes and figure out how to make these prices work.

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Senior Contributor

Re: Strong Cash Rental Auctions In Iowa

Just had somebody send us a copy of the bill from that auction with some of the prices scribbled on it.

 

So, say you're sitting there bidding -- does $500 or $600 bidding at a rental auction have as much of a psychological effect on you as, say $12,000 that you'd be bidding during a sale auction (I know my math's way off!)? Think this kind of deal opens the door to some outside interests that could change pricing for land altogether? 

 

 

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Senior Contributor

Re: Strong Cash Rental Auctions In Iowa

Just made a couple calls on this deal. Talked to a couple of folks, one of whom was one one of the auctioneers at the Mason City sale. Said there were 350 people there. He said the landowner, obviously, is really happy. Here's the final bill. 

 

One interesting thing -- he said some of the winning bidders have been farming some of that land for a really long time -- one he said has been on the land for about 25 years. 

 

Talked to a farm real estate broker and analyst who said he spent about the whole day today trying to figure out what the heck he's going to if/when he has customers come to him wanting to do this. Renting land at some of these levels sure makes it tough to make a profit, doesn't it? 

 

I'll have a full story on this tomorrow here. Anybody on here at one of the sales? Or, anybody do any bidding? What was the tone of the whole thing? Would love to hear more on this.

 

This sure looks like it's going to be a big story moving ahead this year...

 

More later...

 

Jeff

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Contributor

Re: Strong Cash Rental Auctions In Iowa

I say good luck to them......

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Advisor

Re: Strong Cash Rental Auctions In Iowa

Yes, I was there.

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